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Management I nformationSystems - Class Note # 2

Prof. Yuan-Shyi Peter Chiu

Feb. 2012

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Chap 2

Information Systems in the

Enterprise

2.1 Key System Appl icat ion s in the Organization

2.2 Systems from a Functional Perspective

2.3 Integrating Functions and Business

Processes2.4 International Information Systems

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3Fig 2.1: Types of Info rmation Systems

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Information systems that suppo r t the

mon i tor ing , contro l l ing , decis ionmaking, and adm inis trat ive act iv i t iesof middle managers.

Information systems that suppor t thelong-range plann ing act iv i t iesof

senior management .2 / 2

Strategic -level sys tems

Management-level systems

Dif ferent kinds o f sys tems

2.1

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Major Types o f Systems

Executive Support Systems (ESS)

Decision Support Systems (DSS)

Management Information Systems (MIS) Knowledge Work Systems (KWS)

Office Automation Systems (OAS)

Transaction Processing Systems (TPS)

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Computerized systems that perform and

record thedai ly rout ine transact ions

necessary to conduct the business;

they serve the organizationsoperat ional level.

TPS Transaction Processing

Systems

Six Major Types o f Systems

2.1

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TYPICAL TPSAPPLICATIONS

Sales & Market ing Systems

MAJOR FUNCTIONS OF SYSTEMS:Sales Management ;

Market Research ;

Promot ion ; Pr ic ing ; New Products

MAJOR APPLICATION SYSTEMS:Sales Order Info System ;Market Research Sys tem ;

Pric ing System

See Fig. 2-4 ( p.43 )

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TPSTransact ion Processing Systems

Manufactur ing

Plant schedulingMaterial movement control

Machine control

FinanceSecurities trading

Cash management

2.1

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Account ing

PayrollAccount payable

Account receivable

Human Resources

Compensation

Training & development

Employee record keeping

TPSTransact ion Processing Systems

2.1

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Payroll TPS

2.1

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Information systems that aidknowledge workersin the creat ion

and integration o f new know ledgein

the organization .

KWS knowledge work systems

Six Major Types o f Systems

2.1

Example: Engineer ing work stat ion

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OAS office automation systems

Computer systems, such as word

processing, electronic mail systems,

and scheduling systems, that are

designed to inc rease the product iv i ty

of data workersin the office .

Six Major Types o f Systems

2.1

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Information systems at the management

levelof organization that serve the functions

of planning, contro l l ing , and decis ion

mak ingby providing routine summary andexcept ionreports.

MIS Management Information

Systems

Six Major Types o f Systems

2.1

Example: Annual budgeting

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Structured and semi-structured decisions

Report control oriented

Past and present data

Internal orientation

MIS

2.1

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TPSDATA FOR MISAPPLICATIONS

Fig 2-5: How management informat ion systemsob tain their data

the from the organizations TPS.

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Information systems at the

management levelof an organization

that combine data and soph ist icated

analyt ical m odelsto support non-

routinedecision making.

DSS Decision Support Systems

Six Major Types o f Systems

2.1

Example:Contract cos t analys is

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20Fig 2-7: Voyage estimating decision-support sys tem .

Decision Support System (DSS)

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Sales and market ingSales managementSales region analysis

Manufactur ingInventory controlProduction scheduling

MIS & DSS

2.1

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FinanceAnnual budgeting

Cost analysis

Account ingCapital investment analysis

Pricing / profitability analysis

Human ResourceRelocation analysis

Contract cost analysis

MIS & DSS

2.1

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Information system at the

organizations strateg ic leveldesigned

to address unstructu red decis ion

makingthrough advanced graphics

and communicat ions .

ESSExecutive SupportSystems

Six Major Types o f Systems

2.1

Examp le: 5-year operat ing plan

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Top level management

Designed to the individual

Ties CEO to all levels

Very expensive to keep up

Extensive support staff

ESS

2.1

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25Fig 2-8: Model of a typic al execut ive support sys tem .

Executive Support System (ESS)

Figure 2-8

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Sales and marketing Sales trendforecasting

Manufacturing Operating plan

Finance Budget forecasting

Accounting Profit planning

Human Resource Personnel planning

ESS

2.1

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Character ist ics o f Different Typesof Informat ion Systems

Information inputs

Processing

Information outputs

Users

See Table 2-1 ( p.41 )

2.1

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28Fig 2-9: Interrelationships among systems

2.2 Systems from a Funct ional Perspect ive

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SALES & MARKETING SYSTEMS

MANUFACTURING & PRODUCTION

SYSTEMS

FINANCE & ACCOUNTING SYSTEMS

HUMAN RESOURCES SYSTEMS

2.2 Systems from a Funct ional Perspect ive

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2.2 Systems from a Funct ional Perspect ive

Major functions of systems:

Sales management, market research, promotion,pricing, new products

Major application systems: Sales order info system, market research system,

pricing system

Sales and MarketingSystems

S l d M k ti S t

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Sales and MarketingSystems

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2.2 Systems from a Funct ional Perspect ive

Major functions of systems:

Schedul ing, purchasing, shipping, receiving,

engineer ing, operations

Major application systems:

Mater ials resource planning systems, purchaseorder control systems, engineer ing systems,

quali ty control systems

Manu factur ing and Produc t ionSystems

Manu factur ing and Produc t ion Systems

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Manu factur ing and Produc t ionSystems

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2.2 Systems from a Funct ional Perspect ive

Major functions of systems:

Budgeting, general ledger, bil l ing, costaccounting

Major application systems:

General ledger, accounts receivable, accounts

payable, budgeting, funds management systems

Financ ing and A ccount ingSystems

Financ ing and A ccount ing Systems

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Financ ing and A ccount ingSystems

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2.2 Systems from a Funct ional Perspect ive

Major functions of systems:

Personnel records, benefi ts, compensation, laborrelations, training

Major application systems:

Payroll , employee records, benefi t systems,

career path systems, personnel training systems

Human ResourceSystems

Human Resource Systems

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Human ResourceSystems

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Manufactur ing and production:Assembling

product, checking quali ty, producing bi l ls of

materials

Sales and marketing:I denti fying customers,

creating customer awareness, sell ing

Examples o f Business Processes

2.3 Business Processes and Information Systems

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Cross-Funct ional Bus iness Processes

2.3 Business Processes and Information Systems

Fig. 2-12 The Order Fulfillment Process

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I nformation systems help organizations

Achieve great eff iciencies by automatingparts of processes

Rethink and streamline processes

2.3 Business Processes and Information Systems

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Customer Relationship Management (CRM)

Manages all ways used by firms to deal withexisting and potential new customers

Uses information system to coordinate enti re businessprocesses of a f irm

Provides end-to-end customer care

Provides a unif ied view of customer across the company

Consolidates customer data from multiple sources andprovides analytical tools for answer ing questions

2.3 Business Processes and Information Systems

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2.3 Business Processes and Information Systems

Customer Relationship Management (CRM)

Figure 2-13

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2.3 Business Processes and Information Systems

Supply Chain Management (SCM)

Close linkage and coordinationof activities involved inbuying, making, and moving a product

Integrates supplier, manufacturer, distributor, and

customer, logistics, timeReduces time, redundant effort, and inventory costs

Network of organizations and business processes

Helps in procurement of materials, transformation of

raw materials into finished products

Helps in distribution of the finished products tocustomers

Includes reverse logistics- returned items flow in the

reverse direction from the buyer back to the seller

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2.3 Business Processes and Information Systems

Supply Chain Management

Figure 2-14

2 3

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Decide when, what to produce, store, moveRapidly communicate orders

Communicate orders, track order status

Check inventory availability, monitor levels

Track shipments

Plan production based on actual demand

Rapidly communicate product design change

Provide product specifications

Share information about defect rates, returns

2.3 How Inform ation Sys tems Faci l i tateSupp ly Chain Management

2 3 C ll b ti C

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2.3 Collaborative Commerce

Figure 2-15

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2.3 Enterpr ise System

Figure 2-17

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Figure 2-18

2.4 Global System Configuration

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HOMEWORK Chap.2

# 1 # 2 # 3# 7 # 8 # 9

# 10: What is CRM?# 11: What is SCM?

# 12

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